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Touchmark Bancshares, Inc. Reports First Quarter Results

On May 6, 2026, Touchmark Bancshares, Inc. (OTCID: TMAK), which operates Touchmark National Bank, announced its first-quarter financial results for 2026. The bank has showcased notable improvements, especially in the area of organic loan growth and the management of nonperforming assets.

Key Highlights of the Quarter

The quarter ending March 31, 2026, brought several significant achievements for Touchmark Bancshares:

• - Completion of OCC Agreement Termination: The Formal Agreement with the Office of the Comptroller of the Currency (OCC) ended on February 17, 2026, allowing the bank to proceed with its growth strategies more effectively.
• - Organic Loan Growth: Touchmark reported organic loan growth exceeding $11 million, marking its highest achievement in this area in four years.
• - Decrease in Nonperforming Assets: Nonperforming assets saw a 10% decline, indicating effective management of potential problem loans.
• - DTC Eligibility Established: The bank also announced that its stock is now eligible for electronic trading through DTC, enhancing its market accessibility.

Management's Perspective

Bobby Krimmel, President and CEO of Touchmark National Bank, commented on the results, stating, “The termination of the formal agreement allows us to accelerate our growth strategy focused on serving small to medium-sized businesses.” He highlighted the successful boost in organic loan growth as indicative of the bank’s recovery and future potential.

Despite these positive developments, Krimmel noted that the bank faced challenges due to $11.7 million in unexpected loan payoffs, which resulted in a decline in net loan balances and a corresponding $499,000 decrease in loan interest income. Krimmel emphasized that the bank has not engaged in purchasing loans since late 2023, yet the momentum of loan purchase premiums continues to affect earnings.

Restructuring for Growth

Touchmark is actively restructuring its balance sheet. This includes a reduction of retail certificates of deposit (CDs) by $70 million while increasing checking and money market balances by $67 million compared to the previous year. These changes are designed to enhance the bank’s responsiveness to interest rate shifts and to fortify funding as organic loan growth is anticipated to escalate in 2026.

Krimmel expressed caution regarding future net income, which may remain under pressure until the end of 2026 when positive net loan growth is expected to emerge. The bank's proactive approach to managing and alleviating problem assets will continue, with optimism for further reductions in the latter half of the year.

Financial Figures Overview

The first quarter of 2026 saw Touchmark Bancshares report:

• - Net Income: Declined to $94,000, a significant drop from $733,000 for the same quarter in 2025 and a 79% decrease from the sequential quarter.
• - Net Interest Income: Decreased by 30% to $2.1 million year-over-year, influenced by lower interest earnings from loans.
• - Non-interest Income: Reported at $115,000, reflecting a 29% decrease compared to the first quarter of 2025.
• - Total Loans: Reduced by 12%, totaling $321 million due to amortization dynamics and unexpected loan payoffs.
• - Total Deposits: Experienced a reduction of $21 million, reflecting shifts in time and brokered deposits, yet some growth in money market deposits.

Focus on Asset Quality

The financial health of Touchmark also improved in terms of asset quality:

• - Nonperforming Assets: Decreased to $6.5 million, equating to 1.58% of total assets—down from 1.75% in the previous year.
• - Net Charge-Offs: Improved to 0.32% from 0.60% year-over-year, reflecting successful asset resolution measures.
• - Allowance for Credit Losses: Increased to 0.76%, showcasing a conservative approach amid varying market conditions.

About Touchmark Bancshares, Inc.

Touchmark Bancshares is a community bank founded in 2008. Its headquarters in Alpharetta, Georgia, serves various counties while providing essential banking services to small and medium enterprises. With total assets recorded at $410 million and shareholders' equity of $71 million as of March 31, 2026, Touchmark aims to strengthen its community presence further. For more details on Touchmark, visit touchmarknb.com.

Cautionary Note

This report includes forward-looking statements contingent upon various risks and uncertainties, where actual results may differ from expectations. Touchmark disclaims any obligation to update such statements.